Review: Age of Turbulence by Alan Greenspan (Paperback, Expanded)

[picture from Amazon.com]

There's a typo on page 527! It's annoying, but everything else in the book is, to say the least, worth your while.

No one can deny that the first part, the real memoir part, is brilliant. There is no grandstanding, no self-aggrandizing, very modest. And the swipes on the personalities that he disagrees with are nothing short of perfect in rationality; and in using a relaxed tone in doing these, the personal hits appear even more effective.

The book also tries concisely to explain how FED works in the macro- and microeconomic environment. For one, you will understand why it is not possible to do that proverbial "when I become President" idea to eradicate poverty--i.e. it's impossible to just print more and more money to get your country richer and richer.

In trying to just pass by some important concepts though with just a quick footnote, the lay man may not fully get some of the `levers,' impact of controlling money supply, the give and take of increasing and decreasing reserves and interests, etc. The best place of course to learn all these is in an economics classroom with a textbook, but if you get the concept at first pass, the illustration flows perfectly into solid learning.

The writing is sometimes academic, and Greenspan loves to use "to be sure", to have transition between sentences or paragraphs. My advise is: if you don't get the thought in one pass, read the sentence/paragraph again to get full learning. (I would believe that one of the intention of the author here is to teach and let the public be aware of how, most of all, market economies work).

Greenspan's opinions on some of the contentious issues of present and future are short and just give options, but on others they are solid like there's no other choice (like in allowing immigration)--so you cant accuse the author of fedspeaking without standing for anything all the way.

Now on the most important part in this paperback edition... I think there's a sudden shift of tone, towards a bit of `fedspeak,' on the bonus chapter. I think if Mr. Greenspan has a chance, he would re-write this epilogue. It would be sour if he wrote this with a pure intention to excuse his tenure as having no influence at all to the current crisis. (Lehman did not fold yet when he wrote this update). This epilogue is more like saying nothing could have been done, except there should be more enforcement and laws on corporate governance, although he admitted in one of the public hearings already that there is a `flaw' in the system. Mr. Greenspan ought to write another book, even if just to extend this chapter. (I would also buy it).

But overall, this book should be judged on its merit and original intent, regardless whether we blame the person for this crisis or just plain hate or like his past policies on hindsight. When you read the book, everything is presented with reason and beliefs based on intelligent data and experience.

The book deserves 5 stars, no doubt.